Tax Guide for Precious Metals

Capital Gains Tax on Precious Metals

When you sell gold or silver for more than you paid, you realize a capital gain that is subject to federal and potentially state income taxes. The tax treatment depends on how long you held the metals and your income level.

Short-Term Gains

Held less than 1 year

Up to 37%

Taxed as ordinary income

Long-Term Gains

Held more than 1 year

Max 28%

Collectibles rate (not 15/20%)

The 28% Collectibles Rate

While most long-term capital gains are taxed at 0%, 15%, or 20%, precious metals face the "collectibles" rate. Your actual rate may be lower than 28% if your ordinary income tax bracket is lower. For example, if you're in the 22% bracket, your collectibles gain is taxed at 22%, not 28%.

2026 Long-Term Collectibles Tax Rates

Taxable Income (Single)	Ordinary Rate	Collectibles Rate
$0 - $11,600	10%	10%
$11,601 - $47,150	12%	12%
$47,151 - $100,525	22%	22%
$100,526 - $191,950	24%	24%
$191,951 - $243,725	32%	28% (capped)
$243,726 - $609,350	35%	28% (capped)
$609,351+	37%	28% (capped)

Reporting Requirements

Form 1099-B Reporting by Dealers

Dealers are required to report certain sales to the IRS on Form 1099-B. This applies to specific quantities and products:

Gold bars/rounds: 1 kilo (32.15 oz) or more
Silver bars/rounds: 1,000 oz or more
Gold Maple Leafs, Krugerrands, Mexican Onzas: 25 or more
Pre-1965 U.S. silver coins: $1,000 face value or more

Not Reportable (No 1099-B)

Many common transactions do NOT trigger dealer reporting:

American Gold Eagles (any quantity)
American Silver Eagles (any quantity)
Gold bars under 1 kilo
Any numismatic/collectible coins

Your Obligation Remains

Even if dealers don't report your sale, you are still legally obligated to report all capital gains on your tax return. The lack of 1099-B doesn't mean the gain is tax-free—it means the reporting burden falls entirely on you.

Cash Transaction Reporting

Separate from capital gains reporting, dealers must report cash transactions over $10,000 on IRS Form 8300. This applies to:

Cash payments over $10,000 in a single transaction
Related transactions totaling over $10,000 within 24 hours
Structured transactions designed to avoid reporting

Note: Wire transfers, checks, and credit card payments are not considered "cash" for Form 8300 purposes. Only physical currency and certain monetary instruments trigger this reporting.

Tax-Efficient Investment Strategies

1 Hold for Long-Term

Always hold precious metals for more than one year before selling. Short-term gains are taxed at your ordinary income rate (up to 37%), while long-term gains cap at 28%. This simple strategy can save 9+ percentage points in taxes.

Example: On a $100,000 gain for a high earner, holding long-term saves $9,000+ in federal taxes alone.

2 Use Specific Identification

When selling, you can choose which specific coins or bars you're selling (specific identification method) rather than using FIFO (first-in, first-out). This allows you to sell lots with higher cost basis first, reducing your taxable gain.

Key: Maintain detailed purchase records including date, quantity, price, and dealer for each transaction.

3 Precious Metals IRA

Holding gold and silver in a self-directed IRA provides significant tax advantages:

Traditional IRA

• Tax-deductible contributions
• Tax-deferred growth
• Ordinary income tax on withdrawals

Roth IRA

• After-tax contributions
• Tax-free growth
• Tax-free withdrawals

4 Tax-Loss Harvesting

If some of your precious metals have declined in value, you can sell them to realize losses that offset gains elsewhere. Capital losses can offset capital gains dollar-for-dollar, and up to $3,000 of excess losses can offset ordinary income.

Note: The "wash sale" rule applies—don't repurchase substantially identical metals within 30 days before or after the sale.

5 Hold Until Death (Step-Up Basis)

Perhaps the most powerful tax strategy: hold precious metals until death. Heirs receive a stepped-up cost basis equal to fair market value at date of death, completely eliminating capital gains tax on all appreciation during your lifetime.

Maximum Tax Savings: For gold purchased at $400/oz now worth $4,400/oz, this strategy eliminates 28% tax on $4,000/oz of gains—a savings of $1,120 per ounce.

State Tax Considerations

In addition to federal taxes, most states tax capital gains on precious metals. However, several states offer favorable treatment:

No State Income Tax

• Texas
• Florida
• Nevada
• Wyoming
• Washington
• Alaska
• South Dakota
• Tennessee (investment income only)

Exempt Bullion Sales

Some states exempt precious metals from sales tax:

• Texas (investment metals)
• Arizona
• Ohio
• Louisiana
• Michigan
• And many others

Calculate Your Precious Metals Value

Use our calculators to determine the current value of your gold and silver holdings. We provide detailed invoices and documentation to support your tax reporting needs.

Tax Implications of Gold & Silver Investments

Important Tax Consideration